Tanger Inc 10-K/A, filed Jun 29, 2023
Tanger Inc. (SKT)
10-K/A
2023-06-29
For: 2022-12-31
View Original
Added on
April 09, 2026
About this 10-K/A
Tanger Inc filed this 10-K/A on June 29, 2023, covering the fiscal year ended December 31, 2022.
United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A
(Amendment No. 1)
| ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||
For the fiscal year ended December 31 , 2022
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||
For the transition period from _________ to _________
Commission file number 1-11986 (Tanger Factory Outlet Centers, Inc.)
Commission file number 333-3526-01 (Tanger Properties Limited Partnership)
(Exact name of registrant as specified in its charter)
| (Tanger Factory Outlet Centers, Inc.) | ||||||||
| (Tanger Properties Limited Partnership) | ||||||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices)
(336 292-3010
(Registrant’s telephone number, including area code)
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||
| Tanger Factory Outlet Centers, Inc.: | ||||||||
| Title of each class | Trading Symbol (s) | Name of exchange on which registered | ||||||
| Tanger Properties Limited Partnership: | ||||||||
| None | ||||||||
| Securities registered pursuant to Section 12(g) of the Act: | ||||||||
| Tanger Factory Outlet Centers, Inc.: None | ||||||||
| Tanger Properties Limited Partnership: None | ||||||||
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
| Tanger Factory Outlet Centers, Inc. | ☒ | No | ☐ | |||||||||||
| Tanger Properties Limited Partnership | ☒ | No | ☐ | |||||||||||
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
| Tanger Factory Outlet Centers, Inc. | Yes | ☐ | ☒ | |||||||||||
| Tanger Properties Limited Partnership | Yes | ☐ | ☒ | |||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
1
| Tanger Factory Outlet Centers, Inc. | ☒ | No | ☐ | |||||||||||
| Tanger Properties Limited Partnership | ☒ | No | ☐ | |||||||||||
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
| Tanger Factory Outlet Centers, Inc. | ☒ | No | ☐ | |||||||||||
| Tanger Properties Limited Partnership | ☒ | No | ☐ | |||||||||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer," “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
| Tanger Factory Outlet Centers, Inc. | ||||||||||||||
| ☒ | Accelerated Filer | ☐ | ||||||||||||
| Non-accelerated Filer | ☐ | Smaller Reporting Company | ||||||||||||
| Emerging Growth Company | ||||||||||||||
| Tanger Properties Limited Partnership | ||||||||||||||
| Large Accelerated Filer | ☐ | Accelerated Filer | ☐ | |||||||||||
| ☒ | Smaller Reporting Company | |||||||||||||
| Emerging Growth Company | ||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
| Tanger Factory Outlet Centers, Inc. | ☐ | ||||
| Tanger Properties Limited Partnership | ☐ | ||||
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of
the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.
7262(b)) by the registered public accounting firm that prepared or issued its audit report.
| Tanger Factory Outlet Centers, Inc. | |||||
| Tanger Properties Limited Partnership | |||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
| Tanger Factory Outlet Centers, Inc. | Yes | ☐ | No | |||||||||||
| Tanger Properties Limited Partnership | Yes | ☐ | No | |||||||||||
The aggregate market value of voting shares held by non-affiliates of Tanger Factory Outlet Centers, Inc. was approximately $1,451,887,553 based on the closing price on the New York Stock Exchange for such shares on June 30, 2022.
The number of Common Shares of Tanger Factory Outlet Centers, Inc. outstanding as of February 10, 2023 was 104,497,920 .
Auditor Firm PCAOB ID 34 Auditor Name: Deloitte & Touche LLP Auditor Location: Charlotte, North Carolina
Documents Incorporated By Reference
Portions of Tanger Factory Outlet Center, Inc.'s definitive proxy statement filed with respect to the 2023 Annual Meeting of Shareholders are incorporated by reference in Part III.
2
EXPLANATORY NOTE
This Amendment No. 1 (the "Amendment") to the Annual Report on Form 10-K for the year ended December 31, 2022 (the "Original Annual Report") of Tanger Factory Outlet Centers, Inc. and Tanger Properties Limited Partnership amends the Original Annual Report solely for the purpose of revising the Lease Expirations tables contained in Item 2, Properties. With the exception of this revision, the information contained in Item 2, Properties is the same.
As required by Rule 12b-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), in connection with the Amendment, the Company’s Chief Executive Officer and Chief Financial Officer have reissued applicable portions of their certifications required under Section 302 of the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley”). This Amendment does not include certifications under Section 906 of Sarbanes-Oxley because no financial statements are being filed with this Amendment.
With the exception of the foregoing, no other information in the Original Annual Report has been supplemented, updated or amended. This Amendment is not intended to amend or otherwise update other information in the Original Annual Report. Among other things, forward-looking statements made in the Original Annual Report have not been revised to reflect events, results or developments that have occurred or facts that have become known to the Company after the date of the Original Annual Report, and such forward-looking statements should be read in their historical context. Accordingly, this Amendment should be read in conjunction with the Original Annual Report and with the Company’s other filings made with the Securities and Exchange Commission (“SEC”) subsequent to the filing of the Original Annual Report.
3
ITEM 2.PROPERTIES
As of December 31, 2022, our consolidated portfolio consisted of 29 outlet centers totaling 11.4 million square feet located in 18 states and one center under construction. We own interests in six other outlet centers totaling approximately 2.1 million square feet through unconsolidated joint ventures, including two outlet centers in Canada. Our portfolio also includes one managed center totaling approximately 500,000 square feet. Each of our outlet centers, except one joint venture property, features the Tanger brand name. Our consolidated outlet centers range in size from 181,687 to 739,148 square feet. The outlet centers are generally located near tourist destinations or along major interstate highways to provide visibility and accessibility to potential customers.
We believe that the outlet centers are well diversified geographically and by tenant and that we are not dependent upon any single property or tenant. The outlet center in Deer Park, New York is the only property that comprises 10% or more of our consolidated total assets as of December 31, 2022. No property comprises more than 10% of our consolidated revenues for the year ended December 31, 2022. See "Properties - Significant Property" for further details.
We have an ongoing strategy of acquiring outlet centers, developing new outlet centers and expanding existing outlet centers. See “Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources” for a discussion of the cost of such programs and the sources of financing thereof.
As of December 31, 2022, of the 29 outlet centers in our consolidated portfolio, we own the land underlying 23 and have ground leases on six. The following table sets forth information about the land leases on which all or a portion of the outlet centers are located:
| Outlet Center | Acres | Expiration | Expiration including renewal terms at our option | |||||||||||||||||
| Myrtle Beach Hwy 17, SC | 40.0 | 2027 | 2096 | |||||||||||||||||
| Atlantic City, NJ | 21.3 | 2100 | 2101 | |||||||||||||||||
| Sevierville, TN | 43.6 | 2086 | 2086 | |||||||||||||||||
| Riverhead, NY | 47.0 | 2024 | 2039 | |||||||||||||||||
| Mashantucket, CT (Foxwoods) | 8.1 | 2039 | 2089 | |||||||||||||||||
| Rehoboth Beach, DE | 2.7 | 2044 | 2064 | |||||||||||||||||
Generally, our leases with our outlet center tenants typically have an initial term that ranges from 5 to 10 years and provide for the payment of fixed monthly rent in advance. There are often contractual base rent increases during the initial term of the lease. In addition, the rental payments are customarily subject to upward adjustments based upon tenant sales volume. A component of most leases includes a pro-rata share or escalating fixed contributions by the tenant for property operating expenses, including common area maintenance, real estate taxes, insurance and advertising and promotion, thereby reducing exposure to increases in operating expenses resulting from inflation.
4
The following table summarizes certain information with respect to our consolidated outlet centers as of December 31, 2022:
| State | Number of Outlet Centers | Square Feet | % of Square Feet | |||||||||||||||||
| South Carolina | 5 | 1,605,812 | 14 | |||||||||||||||||
| New York | 2 | 1,468,429 | 13 | |||||||||||||||||
| Georgia | 3 | 1,121,579 | 10 | |||||||||||||||||
| Pennsylvania | 3 | 999,442 | 9 | |||||||||||||||||
| Texas | 2 | 823,557 | 7 | |||||||||||||||||
| Michigan | 2 | 671,571 | 6 | |||||||||||||||||
| Alabama | 1 | 554,736 | 5 | |||||||||||||||||
| Delaware | 1 | 550,921 | 5 | |||||||||||||||||
| New Jersey | 1 | 487,718 | 4 | |||||||||||||||||
| Tennessee | 1 | 449,968 | 4 | |||||||||||||||||
| Arizona | 1 | 410,753 | 3 | |||||||||||||||||
| Florida | 1 | 351,691 | 3 | |||||||||||||||||
| Missouri | 1 | 329,861 | 3 | |||||||||||||||||
| Mississippi | 1 | 324,801 | 3 | |||||||||||||||||
| Louisiana | 1 | 321,066 | 3 | |||||||||||||||||
| North Carolina | 1 | 319,762 | 3 | |||||||||||||||||
| Connecticut | 1 | 311,229 | 3 | |||||||||||||||||
| New Hampshire | 1 | 250,558 | 2 | |||||||||||||||||
| Total | 29 | 11,353,454 | 100 | |||||||||||||||||
5
The following table summarizes certain information with respect to our existing outlet centers in which we have an ownership interest as of December 31, 2022. Except as noted, all properties are fee owned:
| Location | Legal Ownership % | Square Feet | % Occupied | ||||||||||||||||||||
| Consolidated Outlet Centers | |||||||||||||||||||||||
| Deer Park, New York | 100 | 739,148 | 100 | ||||||||||||||||||||
Riverhead, New York (1) | 100 | 729,281 | 93 | ||||||||||||||||||||
| Foley, Alabama | 100 | 554,736 | 94 | ||||||||||||||||||||
Rehoboth Beach, Delaware (1) | 100 | 550,921 | 96 | ||||||||||||||||||||
Atlantic City, New Jersey (1) (3) | 100 | 487,718 | 90 | ||||||||||||||||||||
| San Marcos, Texas | 100 | 471,816 | 96 | ||||||||||||||||||||
Sevierville, Tennessee (1) | 100 | 449,968 | 100 | ||||||||||||||||||||
| Savannah, Georgia | 100 | 429,089 | 100 | ||||||||||||||||||||
| Myrtle Beach Hwy 501, South Carolina | 100 | 426,523 | 98 | ||||||||||||||||||||
| Glendale, Arizona (Westgate) | 100 | 410,753 | 100 | ||||||||||||||||||||
Myrtle Beach Hwy 17, South Carolina (1) | 100 | 404,710 | 100 | ||||||||||||||||||||
| Charleston, South Carolina | 100 | 386,328 | 100 | ||||||||||||||||||||
| Lancaster, Pennsylvania | 100 | 375,883 | 100 | ||||||||||||||||||||
| Pittsburgh, Pennsylvania | 100 | 373,863 | 96 | ||||||||||||||||||||
| Commerce, Georgia | 100 | 371,408 | 99 | ||||||||||||||||||||
| Grand Rapids, Michigan | 100 | 357,133 | 91 | ||||||||||||||||||||
| Fort Worth, Texas | 100 | 351,741 | 99 | ||||||||||||||||||||
| Daytona Beach, Florida | 100 | 351,691 | 100 | ||||||||||||||||||||
| Branson, Missouri | 100 | 329,861 | 100 | ||||||||||||||||||||
Southaven, Mississippi (2) (3) | 50 | 324,801 | 100 | ||||||||||||||||||||
| Locust Grove, Georgia | 100 | 321,082 | 99 | ||||||||||||||||||||
| Gonzales, Louisiana | 100 | 321,066 | 100 | ||||||||||||||||||||
| Mebane, North Carolina | 100 | 319,762 | 100 | ||||||||||||||||||||
| Howell, Michigan | 100 | 314,438 | 84 | ||||||||||||||||||||
Mashantucket, Connecticut (Foxwoods) (1) | 100 | 311,229 | 86 | ||||||||||||||||||||
| Tilton, New Hampshire | 100 | 250,558 | 94 | ||||||||||||||||||||
| Hershey, Pennsylvania | 100 | 249,696 | 100 | ||||||||||||||||||||
| Hilton Head II, South Carolina | 100 | 206,564 | 99 | ||||||||||||||||||||
| Hilton Head I, South Carolina | 100 | 181,687 | 99 | ||||||||||||||||||||
| Total | 11,353,454 | 97 | |||||||||||||||||||||
(1)These properties or a portion thereof are subject to a ground lease.
(2)Based on capital contribution and distribution provisions in the joint venture agreement, we expect our economic interest in the venture's cash flow to be greater than our legal ownership percentage. We currently receive substantially all the economic interest of the property.
(3)Property encumbered by mortgage. See Notes 7 and 8 to the consolidated financial statements for further details of our debt obligations.
6
| Location | Legal Ownership % | Square Feet | % Occupied | ||||||||||||||||||||
| Unconsolidated joint venture properties | |||||||||||||||||||||||
Charlotte, North Carolina (1) | 50 | 398,698 | 98 | ||||||||||||||||||||
| Ottawa, Ontario | 50 | 357,209 | 96 | ||||||||||||||||||||
Columbus, Ohio (1) | 50 | 355,245 | 100 | ||||||||||||||||||||
Texas City, Texas (Galveston/Houston) (1) | 50 | 352,705 | 96 | ||||||||||||||||||||
National Harbor, Maryland (1) | 50 | 341,156 | 100 | ||||||||||||||||||||
| Cookstown, Ontario | 50 | 307,883 | 98 | ||||||||||||||||||||
| Total | 2,112,896 | 98 | |||||||||||||||||||||
(1)Property encumbered by mortgage. See Note 5 to the consolidated financial statements for further details of our joint ventures' debt obligations.
| Location | Square Feet | |||||||||||||||||||
| Managed Properties | ||||||||||||||||||||
| Palm Beach, Florida | 457,326 | |||||||||||||||||||
Base Rents and Occupancy Rates
The following table sets forth our year end occupancy and average annual base rent per square foot during each of the last five calendar years for our consolidated outlet centers:
| 2022 | 2021 | 2020 (2) | 2019 | 2018 | ||||||||||||||||||||||||||||
| Occupancy | 97 | % | 95 | % | 92 | % | 97 | % | 97 | % | ||||||||||||||||||||||
| Average annual base rent per square foot | $ | 25.25 | $ | 23.79 | $ | 21.10 | $ | 25.35 | $ | 25.51 | ||||||||||||||||||||||
(1)Average annual base rent per square foot is calculated based on base rental revenues recognized during the year on a straight-line basis including non-cash adjustments to base rent required by United States Generally Accepted Accounting Principles ("GAAP") and the effects of inducements and rent concessions divided by the weighted average square feet of the consolidated portfolio. Average annual base rent excludes common area maintenance and reimbursements.
(2)The decline in the average annual base rent per square foot in 2020 compared to previous years reflects the decline in occupancy from 97% in 2019 to 92% in 2020 and rent modifications primarily due to a number of tenants filing bankruptcy during 2020.
7
Lease Expirations
The following table sets forth, as of December 31, 2022, scheduled lease expirations for our consolidated outlet centers, assuming none of the tenants exercise renewal options:
| Year | No. of Leases Expiring | Approx. Square Feet (in 000's) (1) | Average Annualized Base Rent per sq. ft | Annualized Base Rent (in 000's) (2) | % of Annualized Base Rent Represented by Expiring Leases | |||||||||||||||||||||||||||
| 2023 | 316 | 1,606 | 27.03 | 43,418 | 17 | |||||||||||||||||||||||||||
| 2024 | 354 | 1,676 | 29.14 | 48,838 | 19 | |||||||||||||||||||||||||||
| 2025 | 317 | 1,580 | 27.84 | 43,985 | 17 | |||||||||||||||||||||||||||
| 2026 | 222 | 1,089 | 29.66 | 32,301 | 13 | |||||||||||||||||||||||||||
| 2027 | 201 | 1,016 | 30.71 | 31,197 | 12 | |||||||||||||||||||||||||||
| 2028 | 121 | 792 | 26.31 | 20,840 | 8 | |||||||||||||||||||||||||||
| 2029 | 84 | 346 | 31.93 | 11,048 | 4 | |||||||||||||||||||||||||||
| 2030 | 50 | 313 | 31.47 | 9,851 | 4 | |||||||||||||||||||||||||||
| 2031 | 27 | 140 | 25.56 | 3,578 | 1 | |||||||||||||||||||||||||||
| 2032 | 48 | 372 | 26.30 | 9,785 | 4 | |||||||||||||||||||||||||||
| 2033 and after | 8 | 40 | 36.75 | 1,470 | 1 | |||||||||||||||||||||||||||
| 1,748 | 8,970 | $ | 28.57 | $ | 256,311 | 100 | ||||||||||||||||||||||||||
(1)Excludes leases that have been entered into but which tenant has not yet taken possession, vacant suites, leases that have turned over but not open, temporary leases and month-to-month leases totaling in the aggregate approximately 2.4 million square feet of our consolidated outlet centers.
(2)Annualized base rent is defined as the minimum monthly payments due as of the end of the reporting period annualized, excluding periodic contractual fixed increases. Includes rents which are based on a percentage of sales in lieu of fixed contractual rents.
Changes in rental income associated with individual signed leases on comparable spaces may be positive or negative, and we can provide no assurance that the rents on new leases or renewals of existing leases will increase from current levels, if at all.
Expiring leases
The following table sets forth information regarding the expiring leases for our consolidated outlet centers during each of the last five calendar years:
| Total Expiring | Renewed by Existing Tenants | |||||||||||||||||||||||||
Year (1) | Square Feet (in 000's) | % of Total Outlet Center Square Feet (2) | Square Feet (in 000's) | % of Expiring Square Feet | ||||||||||||||||||||||
| 2022 | 1,968 | 17 | 1,559 | 79 | ||||||||||||||||||||||
| 2021 | 1,728 | 15 | 1,359 | 79 | ||||||||||||||||||||||
| 2020 | 1,526 | 13 | 1,096 | 72 | ||||||||||||||||||||||
| 2019 | 1,320 | 11 | 1,020 | 81 | ||||||||||||||||||||||
| 2018 | 1,742 | 13 | 1,418 | 81 | ||||||||||||||||||||||
(1)Excludes data for properties sold in each respective year.
(2)Represents the percentage of total square footage at the beginning of each year that is scheduled to expire during the respective year.
8
Leasing activity
In 2021, we revised our rent spread presentation from a commenced basis to executed basis and we are presenting it for comparable space. Comparable space excludes leases for space that was vacant for more than 12 months (non-comparable space). We believe that this presentation provides additional information and improves comparability to other retail REITs. Prior period results have been revised to conform with the current period presentation.
The following table sets forth leasing activity for each of the calendar years for comparable space for executed leases for consolidated outlet centers.(1)
| Renewals of Existing Leases | Stores Re-leased to New Tenants | |||||||||||||||||||||||||||||||||||||||||||||||||
Initial Rent (2) | Initial Rent (2) | |||||||||||||||||||||||||||||||||||||||||||||||||
| ($ per sq. ft.) | ($ per sq. ft.) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Year | Square Feet (in 000's) | New | Rent Spread %(3) | Square Feet (in 000's) | New | Rent Spread %(3) | ||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 1,693 | $ | 30.72 | 9 | 122 | $ | 43.47 | 28 | ||||||||||||||||||||||||||||||||||||||||||
| 2021 | 978 | $ | 31.08 | — | 192 | $ | 29.27 | (4) | ||||||||||||||||||||||||||||||||||||||||||
| 2020 | 1,077 | $ | 22.90 | (8) | 91 | $ | 30.02 | (5) | ||||||||||||||||||||||||||||||||||||||||||
| 2019 | 967 | $ | 25.36 | (7) | 385 | $ | 28.34 | (21) | ||||||||||||||||||||||||||||||||||||||||||
| 2018 | 1,381 | $ | 30.57 | (1) | 299 | $ | 36.92 | 17 | ||||||||||||||||||||||||||||||||||||||||||
(1)For consolidated properties owned as of the period-end date. Represents leases for new stores or renewals that were executed during the respective calendar year and excludes license agreements, seasonal tenants and month-to-month leases.
(2)Represents average initial cash rent (base rent and common area maintenance (“CAM”)).
(3)Represents change in initial and expiring cash rent (base rent and CAM). See above for a description of the change in calculation from prior periods.
Occupancy Costs
We believe that our ratio of average tenant occupancy cost (which includes base rent, common area maintenance, real estate taxes, insurance, advertising and promotions) to average sales per square foot is low relative to other forms of retail distribution. The following table sets forth for tenants that report sales, for each of the last five calendar years, tenant occupancy costs per square foot as a percentage of reported tenant sales per square foot for our consolidated outlet centers:
| Year | Occupancy Costs as a % of Tenant Sales | |||||||
| 2022 | 8.6 | |||||||
| 2021 | 8.1 | |||||||
| 2020 | N/A (1) | |||||||
| 2019 | 10.0 | |||||||
| 2018 | 9.9 | |||||||
(1)As a result of the COVID-19 pandemic, retailers stores were closed for much of the second quarter of 2020 due to mandates by order of local and state authorities. Given the fewer than twelve months of sales reported by our tenants for 2020, an average tenant occupancy cost is not provided for this period.
As of December 31, 2022, our occupancy cost ratio increased to 8.6%. The increase from 2021 relates to higher operating costs.
9
Tenants
The following table sets forth certain information for our consolidated outlet centers with respect to our 25 largest tenants based on total annualized base rent as of December 31, 2022 (1) :
| Tenant | Brands | # of Stores | Gross Leasable Area (GLA) | % of Total GLA | % of Total Annualized Base Rent (2) | |||||||||||||||||||||
| The Gap, Inc. | Gap, Banana Republic, Old Navy | 81 | 867,805 | 7.0 | % | 5.3 | % | |||||||||||||||||||
| SPARC Group | Aéropostale, Brooks Brothers, Eddie Bauer, Forever 21, Lucky Brands, Nautica | 88 | 530,635 | 4.3 | % | 4.0 | % | |||||||||||||||||||
| Premium Apparel, LLC; The Talbots, Inc. | LOFT, Ann Taylor, Lane Bryant, Talbots | 76 | 406,570 | 3.3 | % | 3.9 | % | |||||||||||||||||||
| Under Armour, Inc. | Under Armour, Under Armour Kids | 28 | 246,787 | 2.0 | % | 3.0 | % | |||||||||||||||||||
| PVH Corp. | Tommy Hilfiger, Calvin Klein | 38 | 286,103 | 2.3 | % | 3.0 | % | |||||||||||||||||||
| Tapestry, Inc. | Coach, Kate Spade, Stuart Weitzman | 48 | 226,912 | 1.8 | % | 3.0 | % | |||||||||||||||||||
| American Eagle Outfitters, Inc. | American Eagle Outfitters, Aerie | 42 | 283,306 | 2.3 | % | 2.8 | % | |||||||||||||||||||
| Nike, Inc. | Nike, Converse, Hurley | 30 | 362,948 | 2.9 | % | 2.4 | % | |||||||||||||||||||
| Columbia Sportswear Company | Columbia Sportswear | 22 | 176,697 | 1.4 | % | 2.3 | % | |||||||||||||||||||
| Capri Holdings Limited | Michael Kors, Michael Kors Men’s | 27 | 137,486 | 1.1 | % | 2.0 | % | |||||||||||||||||||
| Carter’s, Inc. | Carter's, OshKosh B'gosh | 39 | 173,705 | 1.4 | % | 2.0 | % | |||||||||||||||||||
| Signet Jewelers Limited | Kay Jewelers, Zales, Jared Vault | 49 | 108,873 | 0.9 | % | 1.9 | % | |||||||||||||||||||
| Skechers USA, Inc. | Skechers | 28 | 154,913 | 1.2 | % | 1.8 | % | |||||||||||||||||||
| Hanesbrands Inc. | Hanesbrands, Maidenform, Champion | 33 | 162,479 | 1.3 | % | 1.8 | % | |||||||||||||||||||
| Rack Room Shoes, Inc. | Rack Room Shoes | 25 | 187,848 | 1.5 | % | 1.8 | % | |||||||||||||||||||
| Ralph Lauren Corporation | Polo Ralph Lauren, Polo Children, Polo Ralph Lauren Big & Tall | 30 | 338,181 | 2.7 | % | 1.7 | % | |||||||||||||||||||
| V. F. Corporation | The North Face, Vans, Timberland, Dickies, Work Authority | 27 | 143,207 | 1.2 | % | 1.7 | % | |||||||||||||||||||
| Luxottica Group S.p.A. | Sunglass Hut, Oakley, Lenscrafters | 53 | 79,829 | 0.6 | % | 1.6 | % | |||||||||||||||||||
| Express Inc. | Express Factory | 24 | 168,000 | 1.4 | % | 1.6 | % | |||||||||||||||||||
| H & M Hennes & Mauritz LP. | H&M | 18 | 385,321 | 3.1 | % | 1.6 | % | |||||||||||||||||||
| Adidas AG | Adidas | 19 | 141,430 | 1.1 | % | 1.6 | % | |||||||||||||||||||
| Chico’s, FAS Inc. | Chicos, White House/Black Market, Soma Intimates | 34 | 98,901 | 0.8 | % | 1.5 | % | |||||||||||||||||||
| Levi Strauss & Co. | Levi's | 27 | 111,510 | 0.9 | % | 1.5 | % | |||||||||||||||||||
| Caleres Inc. | Famous Footwear | 25 | 148,489 | 1.2 | % | 1.4 | % | |||||||||||||||||||
| Rue 21, LLC | Rue 21 | 19 | 114,559 | 0.9 | % | 1.3 | % | |||||||||||||||||||
| Total of Top 25 tenants | 930 | 6,042,494 | 48.6 | % | 56.5 | % | ||||||||||||||||||||
(1)Excludes leases that have been entered into but for which the tenant has not yet taken possession, temporary leases and month-to-month leases. Includes all retail concepts of each tenant group for consolidated outlet centers; tenant groups are determined based on leasing relationships.
(2)Annualized base rent is defined as the minimum monthly payments due as of the end of the reporting period annualized, excluding periodic contractual fixed increases. Includes rents that are based on a percentage of sales in lieu of fixed contractual rents.
10
Significant Property
The Deer Park, New York outlet center is the only property that comprises 10% or more of our consolidated total assets. No property comprises more than 10% of our consolidated revenues.
Tenants at the Deer Park outlet center principally conduct retail sales operations. The following table shows occupancy and certain base rental information related to this property as of December 31, 2022, 2021 and 2020:
| Deer Park | Square Feet | 2022 | 2021 | 2020 | ||||||||||||||||||||||
| Outlet Center Occupancy | 739,148 | 100 | % | 95 | % | 89 | % | |||||||||||||||||||
Average base rental rates per weighted average square foot (1) | $ | 35.33 | $ | 31.99 | $ | 19.25 | ||||||||||||||||||||
(1)Average annual base rent per square foot is calculated based on base rental revenues recognized during the year on a straight-line basis including non-cash adjustments to base rent required by GAAP and the effects of inducements and rent concessions divided by the weighted average square feet of the Deer Park Outlet Center.
The increase in the average annual base rent per square foot in 2022 compared to 2021 reflects the increase in occupancy from 95% in 2021 to 100% in 2022 and temporary rent modifications primarily due to a number of tenants filing for bankruptcy during 2020.
Depreciation on the outlet centers is computed on the straight-line basis over the estimated useful lives of the assets. We generally use estimated lives of up to 33 years for buildings, 15 years for land improvements and 7 years for equipment. Expenditures for ordinary repairs and maintenance are charged to operations as incurred while significant renovations and improvements, including tenant finishing allowances, which improve and/or extend the useful life of the asset are capitalized and depreciated over their estimated useful life. Real estate taxes assessed on this outlet center during 2022 amounted to $5.6 million. Real estate taxes for 2023 are estimated to be approximately $5.7 million.
The following table sets forth, as of December 31, 2022, scheduled lease expirations for the Deer Park outlet center assuming that none of the tenants exercise renewal options:
| Year | No. of Leases Expiring (1) | Square Feet (in 000's) (1) | Annualized Base Rent per Square Foot | Annualized Base Rent (in 000's) (2) | % of Gross Annualized Base Rent Represented by Expiring Leases | |||||||||||||||||||||||||||
| 2023 | 16 | 99 | 31.09 | 3,078 | 15 | |||||||||||||||||||||||||||
| 2024 | 24 | 177 | 38.72 | 6,854 | 33 | |||||||||||||||||||||||||||
| 2025 | 5 | 24 | 33.46 | 803 | 4 | |||||||||||||||||||||||||||
| 2026 | 5 | 19 | 45.37 | 862 | 4 | |||||||||||||||||||||||||||
| 2027 | 4 | 15 | 46.60 | 699 | 4 | |||||||||||||||||||||||||||
| 2028 | 11 | 108 | 42.57 | 4,598 | 22 | |||||||||||||||||||||||||||
| 2029 | 7 | 21 | 42.24 | 887 | 4 | |||||||||||||||||||||||||||
| 2030 | 4 | 28 | 44.21 | 1,238 | 6 | |||||||||||||||||||||||||||
| 2031 | 2 | 5 | 37.60 | 188 | 1 | |||||||||||||||||||||||||||
| 2032 | 3 | 95 | 15.47 | 1,470 | 7 | |||||||||||||||||||||||||||
| 2033 and after | — | — | — | — | — | |||||||||||||||||||||||||||
| Total | 81 | 591 | $ | 34.99 | $ | 20,677 | 100 | % | ||||||||||||||||||||||||
(1)Excludes leases that have been entered into but for which the tenant has not taken possession, vacant suites, leases that have turned over but not open, temporary leases and month-to-month leases totaling in the aggregate approximately 148,000 square feet.
(2)Annualized base rent is defined as the minimum monthly payments due as of the end of the reporting period annualized, excluding periodic contractual fixed increases. Includes rents that are based on a percentage of sales in lieu of fixed contractual rents.
11
ITEM 15.EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
The following documents are filed as part of this Amendment:
Exhibits.
| Exhibit No. | Description | |||||||
| 31.1 | ||||||||
| 31.2 | ||||||||
| 31.3 | ||||||||
| 31.4 | ||||||||
| 101.INS** | Inline XBRL Instance Document - the Instance Document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document. | |||||||
| 101.SCH** | Inline XBRL Taxonomy Extension Schema Document | |||||||
| 101.CAL** | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
| 101.LAB** | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
| 101.PRE** | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
| 101.DEF** | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
| 104** | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
** Submitted herewith.
12
SIGNATURES of Tanger Factory Outlet Centers, Inc.
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| TANGER FACTORY OUTLET CENTERS, INC. | ||||||||
| By: | /s/ Michael J. Bilerman | |||||||
| Michael J. Bilerman | ||||||||
| Executive Vice President, Chief Financial Officer, Chief Investment Officer and Secretary | ||||||||
June 29, 2023
13
SIGNATURES of Tanger Properties Limited Partnership
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| TANGER PROPERTIES LIMITED PARTNERSHIP | ||||||||
| By: | TANGER FACTORY OUTLET CENTERS, INC., its sole general partner | |||||||
| By: | /s/ Michael J. Bilerman | |||||||
| Michael J. Bilerman | ||||||||
| Executive Vice President, Chief Financial Officer, Chief Investment Officer and Secretary | ||||||||
June 29, 2023
14
Exhibit 31.1
I, Stephen J. Yalof, certify that:
1. I have reviewed this annual report on Form 10-K/A of Tanger Factory Outlet Centers, Inc. for the year ended December 31, 2022; and
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.
Date: June 29, 2023
/s/ Stephen J. Yalof
Stephen J. Yalof
President, Chief Executive Officer
Tanger Factory Outlet Centers, Inc.
Exhibit 31.2
I, Michael J. Bilerman, certify that:
1. I have reviewed this annual report on Form 10-K/A of Tanger Factory Outlet Centers, Inc. for the year ended December 31, 2022; and
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.
Date: June 29, 2023
/s/ Michael J. Bilerman
Michael J. Bilerman
Executive Vice President, Chief Financial Officer, Chief Investment Officer and Secretary
Tanger Factory Outlet Centers, Inc.
Exhibit 31.3
I, Stephen J. Yalof, certify that:
| 1 | I have reviewed this annual report on Form 10-K/A of Tanger Properties Limited Partnership for the year ended December 31, 2022; and | ||||||||||
| 2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report. | ||||||||||
| Date: | June 29, 2023 | ||||||||||
| /s/ Stephen J. Yalof | |||||||||||
| Stephen J. Yalof | |||||||||||
| President, Chief Executive Officer | |||||||||||
| Tanger Factory Outlet Centers, Inc., sole general partner of Tanger Properties Limited Partnership | |||||||||||
Exhibit 31.4
I, Michael J. Bilerman, certify that:
| 1 | I have reviewed this annual report on Form 10-K/A of Tanger Properties Limited Partnership for the year ended December 31, 2022; and | ||||||||||
| 2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report. | ||||||||||
| Date: | June 29, 2023 | ||||||||||
| /s/ Michael J. Bilerman | |||||||||||
| Michael J. Bilerman | |||||||||||
| Executive Vice President, Chief Financial Officer, Chief Investment Officer and Secretary | |||||||||||
| Tanger Factory Outlet Centers, Inc., sole general partner of Tanger Properties Limited Partnership | |||||||||||